When it comes time to protect yourself and your family in the area of medical care, do you know how to choose between the different types of health insurance policies? There are three basic venues for health insurance policies. These are: consumer directed policies, traditional policies, and managed care policies. Each of these different types of policy covers a very different amount of services. While some cover medical, dental, vision, and mental health services, others will only cover emergency medical care. It is important to research each type thoroughly before purchasing any of the health insurance policies, so that you have a full understanding of exactly what is covered by each type.
Traditional Policies
Traditional heath insurance policies, or fee for service policies, as they are sometimes known; require that (after a small premium is paid) each service the covered person receives is paid for by the patient at a discounted rate. This is called a co-pay. Depending on your level of coverage, your co-pay will be higher or lower. This co-pay will be required on all medical care rendered, whether it is a routine office visit, or a more intensive hospital stay. While these health insurance policies may have cheaper premiums, you may end up paying more in the long run.
Managed Care Policies
There are three different types of managed care health insurance policies: HMOs, PPOs, and POSs. Each of these provides a different type of coverage, and should be well researched before your purchase your policy. Managed care health insurance policies offer the patient a choice of providers (except in the case of HMOs), and offer discounted services when an “in network” physician is chosen. Often, these are comprehensive policies (again, except in the case of HMOs) which will cover everything from emergency medical services, to vision and dental care as well. Often, a deductible is paid, not unlike auto insurance, and everything over and above that deductible is covered by the insurance company.
Consumer Directed Policies
With consumer directed health insurance policies, the benefits for covered medical expenses are paid directly to the insured. The insured then has the option of using these funds to pay the physician’s expenses, or using the monies to pay for any other, non-medical expenses accrued as a result of injury or illness.
Whichever of the different health insurance policies you choose, be certain that you are quite sure of what will be covered before you make your final decision.
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